Divide net burn by net new ARR to see how much cash the business consumes per unit of growth.
The ratio divides one figure by the other and is read against a conventional benchmark of 1.5. Both the ratio and its percentage form are shown, because different audiences expect different presentations of the same number. A efficiency multiple compresses two absolute figures into one comparable number, which is what makes it usable across companies and periods of different size.
Burn Multiple
Burn Multiple = Net cash burned in the period ÷ Net new ARR added
Burn Multiple = Net cash burned in the period ÷ Net new ARR added The ratio divides one figure by the other and is read against a conventional benchmark of 1.5. Both the ratio and its percentage form are shown, because different audiences expect different presentations of the same number.
A efficiency multiple compresses two absolute figures into one comparable number, which is what makes it usable across companies and periods of different size.
This calculator takes 2 inputs: Net cash burned in the period, Net new ARR added. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.